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28 March 2024

Banks affirm support for Credit Bureau after deadline

Published
By Staff

All UAE banks have affirmed their support to the launch of Al Etihad Credit Bureau as the deadline to submit data by banks to the bureau expires today (April 30), the UAE Banks Federation said on Wednesday.

“The Federation strongly supports the creation of the Al Etihad Credit Bureau, and we are working closely with all Federation members to ensure that all member banks meet the requirements as stipulated by the Al Etihad Credit Bureau,” AbdulAziz Al Ghurair, Chairman of the UAE Banks Federation, said in a media statement on Wednesday.

“Thus far all banks have been providing active support and participation for the various requirements such as securing IT connections with the Bureau, submitting test data, and attending technical and other workshops,” he added.

Al Ghurair noted that “[a]ll banks have been working towards meeting the deadline for the last deliverable, which is to submit 24 months’ historical data by April 30. Our understanding is that all banks are actively involved with the Al Etihad Credit Bureau and are looking forward to the successful launch of the Credit Bureau”.

On April 24, the Bureau urged financial institutions operating in the UAE to furnish data about their customers in its push to commence operations. The Bureau had earlier announced its readiness in January this year to start operations in the first quarter of 2014.

It said last week that only one bank – National Bank of Fujairah (NBF) – had furnished the complete set of data to Al Etihad Credit Bureau.

The UAE Banks Federation’s didn’t say how many more banks have fully furnished their customers’ data for two years.

The UAE Banks Federation, a professional representative body representing 49 member banks operating in the UAE, is to convene an exceptional meeting of its Consumer Committee soon to discuss member banks’ cooperation with Al Etihad Credit Bureau.

Al Ghurair said: “The establishment of a reliable credit bureau is a positive step for both banks and customers. It will enable banks to take well informed credit decisions. In the long run, it will improve portfolio quality for the banks and ensure responsible lending to customers by preventing them from getting into debt that they cannot afford. Overall it is expected to strengthen the economy and the banking system in the UAE.”

The UAE Banks Federation has also recently reiterated its support for the alleviation of personal debt in the UAE, and has encouraged its members to co-operate fully with UAE Nationals Debt Settlement Fund.